Panel starts planning P.C. resort tax proposal

Published: Thursday, April 3, 2014 at 08:02 PM.

PANAMA CITY
— Members of a group tasked with determining how $6 million in new tax revenue would be spent met to discuss plans for the first time Thursday.

Panama City’s Tourist Development Council (TDC) Plan Advisory Committee — consisting of attorneys, hoteliers, entertainment organizers and fishing industry insiders — heard ground rules outlined by Florida Statutes for which projects could benefit from the city’s first 5 percent “bed tax” in its first two years of implementation.

Initially, officials estimated revenue from the bed tax at about $4 million every two years, but updated calculations presented to the committee Thursday put that figure between $5 million and $6 million.

Florida
statute stipulates funds can be used to acquire, build, repair or promote zoological parks, fishing piers, nature centers, convention centers, aquariums or museums that are publicly owned or owned by not-for-profit organizations. The revenue also can be spent on advertising to attract tourism revenue.

“You want to make sure whatever you do is not in competition with [
Panama City
Beach
] but complimentary,” said Dan Rowe, TDC director. “Instead of duplicating things, you need to enhance those things for everybody’s benefit.”

Committee members expressed interest in a sports complex, enhancements to fishing facilities in
St. Andrews
Bay
and enhanced entertainment venues on the marina to compliment the ongoing redevelopment project of the downtown marina.

“I think we have a great opportunity here to support the city’s plans for the marina,” said Andrew Levy, chairman. “It’s a great opportunity to take a look at those and develop a plan that leverages the bed tax to really promote those and make it successful.”

PANAMA CITY — Members of a group tasked with determining how $6 million in new tax revenue would be spent met to discuss plans for the first time Thursday.

Panama City’s Tourist Development Council (TDC) Plan Advisory Committee — consisting of attorneys, hoteliers, entertainment organizers and fishing industry insiders — heard ground rules outlined by Florida Statutes for which projects could benefit from the city’s first 5 percent “bed tax” in its first two years of implementation.

Initially, officials estimated revenue from the bed tax at about $4 million every two years, but updated calculations presented to the committee Thursday put that figure between $5 million and $6 million.

Florida statute stipulates funds can be used to acquire, build, repair or promote zoological parks, fishing piers, nature centers, convention centers, aquariums or museums that are publicly owned or owned by not-for-profit organizations. The revenue also can be spent on advertising to attract tourism revenue.

“You want to make sure whatever you do is not in competition with [Panama CityBeach] but complimentary,” said Dan Rowe, TDC director. “Instead of duplicating things, you need to enhance those things for everybody’s benefit.”

Committee members expressed interest in a sports complex, enhancements to fishing facilities in St. AndrewsBay and enhanced entertainment venues on the marina to compliment the ongoing redevelopment project of the downtown marina.

“I think we have a great opportunity here to support the city’s plans for the marina,” said Andrew Levy, chairman. “It’s a great opportunity to take a look at those and develop a plan that leverages the bed tax to really promote those and make it successful.”

The two-year plan has to be developed and then approved by the City Commission before it can be considered by the Bay County Commission. Once it passes through each commission, a referendum vote — where all Panama City voters will have their say — would be held.

City officials are aiming for the November ballots. It is unknown how soon the tax would be collected if the referendum passes.

Committee members were curious about whether capital projects would need to be completed within the two-year timeline or if some funds could be set aside for emergencies. The group’s advisors said the statute only requires the funds be committed to a project and a percentage also could be allocated to reserves.

However, if those plans needed to be changed, it could be difficult.

“Once the people vote on it, that’s it for forever and a day,” Sale said. “Unless you have another referendum (vote), and that’s a bear.”

The committee scheduled meetings every other Thursday at 3 p.m. for two months in order to have a plan ready by June.

WHO WOULD PAY?

The 5 percent “bed tax” would apply within city limits to the rental of hotels, motels, apartments, condominiums and homes if the rental is less than six months. A two-year plan of how the revenue would be spent has to be developed by the TDC Plan Advisory Committee and then approved by the Panama City Commission before it can be considered by the Bay County Commission. Once it passes through each commission, a referendum would be held.